Insurance Term – Juvenile Life Insurance

If you don't have the money yet to invest, pay your loans, do debt management, purchase insurance, health insurance, or even donate
to a cause is to first invest in yourself, or in knowledge. One of the
ways to build up your knowledge capital is to read. Additionally for this week,
I'll also be sharing about short terminology and topics on Insurance!

Juvenile Life Insurance is a type of life insurance policy which is taken on the life of
minors or young adults, typically between the ages of 0 to 18 years.

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Now, in our country I haven't heard much about this but I believe this is still a possible customization of an insurance plan so long as one can afford it I suppose. Here's what I have found on Juvenile Insurance.

Juvenile Life Insurance Key Features:

Taken on the lives of minors i.e. below the age of 18 years

Depending on the type of insurance policy taken, benefit payment can vary from death benefit (in case of Term Product), maturity value or cash value (in case of Whole Life, Endowment, and Universal Life etc.) at the end of the specified term.

Premiums amounts are low basically because they are taken at a very young age (Premium being a factor of age).

These policies are usually underwritten at a standard rate as the probability of having any health problem is low for minors.

The ownership and the premium paying authority lies with the purchasing adult till the child reaches the age of majority as defined by the state of law. Upon reaching the legal age of majority, the ownership of the policy can be transferred to the child.

Children's life insurance policies also provide cover for the child's parent/guardian/grandparent for a specified term. That is, in case of death of the parent, guardian, or grandparent, the child's future is not put at risk.

In the event of such an occurrence, the child receives the sum assured in the policy plus bonus/participating profit/guaranteed addition, if any, or the value of the investments, at a pre-determined age.

These policies have appointees instead on nominees. Upon reaching the majority age, the child gets the right to select or nominate the beneficiary of the policy.

Juvenile Life Insurance Benefits:

In the event of the child's early death, a pre-existing life insurance policy can provide sufficient proceeds to cover funeral and burial expenses.

The proceeds of a child's life insurance policy can be used to cover medical debts that may exist subsequent to his death.

Purchasing life insurance for a healthy child is relatively inexpensive as the age of the child is less and the underwriting rating is standard (both being factors of Premium) in this scenario.

Cash Value accrued in a juvenile insurance policy can be used to build cash or loan values to help pay for a college education.

Generally, children's policies are calculated to mature at specific, important events in the child's life, such as attaining college-going age or wedding. This money is receivable irrespective of whether the owner i.e. the parent/guardian/grandparent survives the term of the policy

Help protect a child's insurability if the child should become uninsurable before reaching adulthood.
When the child becomes an adult, most companies guarantee automatic eligibility to extend coverage regardless of future changes in health conditions.

In case of a money back policy, the child receives fixed portions of the sum assured at regular intervals. On maturity, the child receives the balance sum assured, if any, plus the bonus/participating profit/guaranteed addition, if any, or the value of investments, whichever is higher.

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About This Blog

Vernon Joseph Go is a Corporate Mad Hatter passionate about learning, technology, simplified finance as well as Inclusive Businesses through Social Entre/Intrapreneurship Development by bridging purpose and profit.